Options News
$HUT option bulls are mining profits
Hut 8 Mining Corp (HUT) is trading up this session, handing big gains to bullish option positions opened last month. On Aug. 19 and Aug. 27, Market Rebellion’s Unusual Activity programs detected the the collective purchase of 24,500 September $10 calls for $0.21 to $0.35 with shares at $6.16 to $7.11. Open interest in the contract […]
On Aug. 19 and Aug. 27, Market Rebellion’s Unusual Activity programs detected the the collective purchase of 24,500 September $10 calls for $0.21 to $0.35 with shares at $6.16 to $7.11. Open interest in the contract before the trades occurred each day was just 2,366 and 6,463, respectively, showing that these were new positions.
Those calls traded for up to $0.86 today, at least 2 times their purchase prices. The stock rose by as much as 51.62% in the same time frame, showing how quickly options can far outpace gains in their underlying shares.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
HUT was last up 7.5% at $11.03 after trading as high as $11.95 earlier in the session.